Location: Baton Rouge, LA | Metro: Baton Rouge, LA HUD Metro FMR Area
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,090 |
| 1 Bedroom | $1,110 |
| 2 Bedrooms | $1,260 |
| 3 Bedrooms | $1,600 |
| 4 Bedrooms | $2,020 |
| 5 Bedrooms | $2,343 |
| 6 Bedrooms | $2,624 |
| 7 Bedrooms | $2,834 |
| 8 Bedrooms | $2,976 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 3BR | $1,600 | $141,425 | 1.13% | B |
U.S. Census Bureau data (2024)
The ZIP code 70812, located within the Baton Rouge, LA HUD Metro FMR Area, serves as a strategic cash-flow anchor for a Section 8 portfolio. The Fair Market Rent (FMR) for FY 2024 is set at $1310, which is slightly higher than the current market rent of $1,288. This positive spread ensures that landlords can consistently achieve rental income above the prevailing market rates, thus providing a stable and reliable source of cash flow.
To further support this strategy, the median home value in ZIP 70812 is $130,963. This relatively low figure means that the initial investment required to acquire properties in this area is manageable, allowing for a quicker return on investment through steady rental income. Landlords should take advantage of the guaranteed rental payments from the Section 8 program, which will exceed the local market rents, ensuring a solid cash flow position.
The 0.3% price-cut share indicates that there is minimal competition forcing landlords to lower their rents below the FMR. This is advantageous as it allows landlords to maintain higher rents without losing tenants to competitors who might offer lower rates. Additionally, the N/A-day DOM (Days on Market) suggests that properties in this area are either rented quickly or that there is limited data on the speed of rental transactions. In any case, this points towards a robust demand for rental properties, supporting the cash-flow anchor strategy.
While the 29.2% renter share and median income of $37,006 could suggest potential for an appreciation play or diversification, the key factor here is the consistent positive cash flow that can be achieved due to the favorable spread between FMR and market rent. This makes ZIP 70812 a strong candidate for inclusion in a Section 8 portfolio focused on generating reliable income.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.